New AUSTRAC restrictions target crypto ATM scams, as losses top $2 million and older users face growing risks.
Crypto ATM Scams Prompt Regulatory Crackdown in Australia
Australia’s financial watchdog has introduced stricter regulations for cryptocurrency ATMs following a surge in scams targeting vulnerable users. According to the Australian Federal Police (AFP), more than AU$3.1 million ($2 million USD) has been lost through crypto ATM-related scams in just 12 months.
These figures, authorities warn, could represent only a small portion of the actual damage.
AUSTRAC Rolls Out New Rules for Crypto ATM Operators
On June 3, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced new operational rules aimed at preventing scams and money laundering through crypto ATMs. The key changes include:
- AU$5,000 ($3,250 USD) cash transaction limits for both deposits and withdrawals
- Mandatory scam warning signs at ATM locations
- Enhanced transaction monitoring systems
- Stricter customer due diligence obligations
Currently, these limits apply solely to crypto ATM providers, but AUSTRAC is encouraging Australian crypto exchanges to adopt similar safeguards if they deal with cash-for-crypto transactions.
Protecting Older Australians from Crypto Fraud
The changes follow a recent task force investigation into crypto ATM usage in Australia. The findings revealed that:
- 72% of transaction value came from users over the age of 50
- A significant number of victims were aged 60–70, many of whom were unaware they had been scammed
AUSTRAC CEO Brendan Thomas emphasized the urgency of the measures:
“It is a huge concern that older Australians are overrepresented in crypto ATM use and are frequently targeted by scammers.”
AFP: Scam Victims Often Stay Silent
The Australian Federal Police reported that 150 unique crypto ATM scam cases were submitted through the national cybercrime reporting portal between January 2024 and January 2025.
AFP Commander Graeme Marshall stated that many victims remain silent:
“Scammers use highly sophisticated methods. Many victims are too embarrassed to come forward or simply don’t know how to report the fraud.”
Marshall urged the public to discuss such scams openly to raise awareness and protect others.
Crypto ATM Use Growing Rapidly in Australia
Despite the risks, crypto ATM adoption in Australia has surged. Once a slow adopter, Australia now ranks as the third-largest crypto ATM market in the world, according to Coin ATM Radar.
- As of June 2025, there are 1,819 active crypto ATMs across the country
- Up from just 67 machines in August 2022
- Over AU$275 million ($180 million USD) is moved annually via these ATMs
- Popular cryptocurrencies transacted include Bitcoin (BTC), Tether (USDT), and Ethereum (ETH)
Major Players in Australia’s Crypto ATM Market
Leading crypto ATM providers in Australia include:
- Localcoin – 753 ATMs
- Coinflip – 700 ATMs
- Bitcoin Depot – 182 ATMs
Final Thoughts: Tighter Controls Aim to Curb Crypto Exploitation
As cryptocurrency adoption in Australia expands, authorities are working to balance innovation with protection. The new AUSTRAC guidelines are an important step to reduce crypto-related scams, particularly among older demographics, and ensure compliance with anti-money laundering laws.
While the rules are under ongoing review, AUSTRAC’s message is clear: crypto must be safe for everyone.
